Just reread this note. Absolutely fascinating. Bulls right now are pointing to Commodity prices starting to roll over, while Bears are pointing to gas prices relentlessly going up. This reminds me of your note from before about hog prices in China as a proxy for consistent inflation - was wondering what your views are on this signal? Looks to have established a range after the crash. Perhaps inflation follows suit?
Thank you for laying it out more. So because they reduced the capacity of these certain companies, they have in doing so kept the price of the commodity from cratering in a time when you dont need as much of that certain material. Where im getting tripped up is wouldnt that have any impact on the workers at those companies though? Wouldn't you let go of some of your employs if they are redundant? Or do you just start working slower? (LOL, it would be like a Friday afternoon ever day!) If they did let go of some of their working and gave the others a raise because they now dont have to do as much but sales are the same, dont you end up getting a huge divide in income then? Like the fruit of that is labor wage divide?
Just reread this note. Absolutely fascinating. Bulls right now are pointing to Commodity prices starting to roll over, while Bears are pointing to gas prices relentlessly going up. This reminds me of your note from before about hog prices in China as a proxy for consistent inflation - was wondering what your views are on this signal? Looks to have established a range after the crash. Perhaps inflation follows suit?
Thank you for laying it out more. So because they reduced the capacity of these certain companies, they have in doing so kept the price of the commodity from cratering in a time when you dont need as much of that certain material. Where im getting tripped up is wouldnt that have any impact on the workers at those companies though? Wouldn't you let go of some of your employs if they are redundant? Or do you just start working slower? (LOL, it would be like a Friday afternoon ever day!) If they did let go of some of their working and gave the others a raise because they now dont have to do as much but sales are the same, dont you end up getting a huge divide in income then? Like the fruit of that is labor wage divide?